In Argentina, your money is worth double if you skip the airport currency exchange and instead go to one of the many black market exchanges hidden throughout Buenos Aires. These illegal exchanges are called "cuevas" (the word for "cave" in Spanish), and they are a crucial part of Argentina's financial infrastructure. Argentinians are constantly exchanging their pesos (ARS) for other currencies, usually US dollars (USD), and back again because ...

Pirate crews developed a surprisingly similar approach to compensation in the 17th century. Just like many startups, they also balanced equity incentives with other mechanisms that would be familiar to a startup employee today, such as bonuses. These surprising similarities offer an interesting frame through which we can reflect on why startup equity and bonuses are structured the way they are. We can learn a lot about the theory of compensat...

Inflation hits some parts of the economy harder and faster than others. It's obvious once you say it, and yet the way pundits and academics talk about inflation glosses over this reality. As a result, most people who haven't had direct experience with high inflation have a flawed view of how it affects daily life. Popular use of the term "inflation" makes it sound like the inflation rate is a single indisputable number that you can plug into ...

We tend to choose larger homes than we want our neighbors to choose. The result: sprawling development that doesn't match what people actually want from their communities. People aim to maximize access and space when deciding where to live. All things equal, most people like living in places with easy access to their day-to-day life. It's nice to be able to walk your kids to kindergarten, and it's easier to keep a social life when many of yo...

Mobility is central to living in every city. In this episode, we discussed how different communities tackle the question of transportation, and how culture shapes how different transport technologies get adopted.RSS · Apple Podcasts · Spotify · OvercastMobility is central to living in every city. In this episode, we discussed how different communities tackle the question of transportation, and how culture shapes how different transport technol...

Nadia Eghbal’s new book, Working In Public: the Making and Maintenance of Open Source Software, may not have been on your short list of books to read this year. It’s admittedly a nerdy topic: it’s about open source projects, roles and responsibilities; the rise of GitHub as a developer platform; and how developer culture is evolving around the new power of creator platforms. I recommend you get it. It is mostly about software development, bu...

Every place has some dirty secrets, even Disney World. We all have to get rid of waste somehow! In this episode, the Bertauds and I discuss methods of sanitation and waste management from around the world, and how these hidden systems shape our cities. RSS · Apple Podcasts · Spotify · Overcast Every place has some dirty secrets, even Disney World. We all have to get rid of waste somehow! So in this episode, the Bertauds and I discuss methods o...

Alain and Marie-Agnes raised three children while living their nomadic lifestyle. So in this episode, we dug into how their role as parents shaped how they experience cities. Join us as we roam Bangkok, Guadalajara, Sana'a, Paris, Port-au-Prince, NYC and beyond!RSS · Apple Podcasts · Spotify · Overcast Here's the full transcript. You can also find it with synced audio here. If you'd like to correct any errors in the transcript, let me know an...

I'm starting a podcast with my friends, Marie-Agnes and Alain Bertaud, who also happen to be the most interesting couple I know. Over the course of this first conversation, we traveled all around the globe for a whirlwind tour of the adventurous life they've led together.Audio · Photos · Transcript RSS · Apple Podcasts · Spotify · Overcast As I mentioned in my recent post, I'm starting a podcast with my friends, Marie-Agnes and Alain Bertau...

I'm starting a new podcast called Order Without Design with the most interesting couple I know: Alain & Marie-Agnes Bertaud. This project is an extension of their book, Order Without Design: How Markets Shape Cities. With its focus on economic theory, you might not realize that this book is the product of the adventurous life these two have shared together. This podcast series is my excuse to hear and share those stories. Join the three of u...

You're not allowed inside the Duomo with your shoulders uncovered. We learned this the hard way. I was wearing a spaghetti strap dress (it's 92℉/33℃ and humid here in Milan), so they stopped my little group at the entrance, after we'd already purchased 3 tickets. Luckily, we only had about 15 seconds of frustration. I said "Ah that's a shame", Sebastián responded "Oh I'm sure there's a shop around here somewhere", Tyler said "Markets in eve...

I recently spent a day at Sea Ranch, a strange and beautiful place. Sea Ranch is a planned community with a distinctive architectural style: simple timber-frame structures clad in wooden siding, and gardens all planted with native flora. The Sea Ranch Design Committee enforces strict design rules on all 1,800 homes along that 10-mile stretch of the Northern California coast. The result is a cohesive, calming aesthetic unlike anywhere else I've...

This essay was written by Andrew Kortina and Namrata Patel. Kinky (S1) vs classical (S0) labor supply curve.Over the past few decades, labor force participation has sharply dropped for men ages 20-34. Theories about the root cause range from indolence, to a lack of skills and training, to offshoring, to (perhaps most interestingly) the increasing attractiveness and availability of leisure and media entertainment. In this essay, we propose th...

Jake Auchincloss emailed me about my recent post For the greater good: the game theory of zoning and made the constructive point that a homeowner's mindset is "situation-dependent, not ingrained". At the end of the post, I had written that "Individualists and Regionalists are odd bedfellows". Jake pointed out that there may be tension at the abstract level of the Individualist-Localist-Regionalist framework, but that in practice people don't o...

Pro-housing advocates criticize "NIMBYs" as being uncooperative and selfish. However that's not how the so-called NIMBYs see themselves. The difference is a question of the granularity of your analysis. Individualists vs Localists A question I hear a lot is: "Why do NIMBY homeowners support zoning laws? Isn't it in their best interest to allow for the highest and best use so that they can sell their own property for the maximum price? Don't t...

Epistemic status: Pretty sure of the structure of the argument (~80%), not so sure of the valence of the coefficients (~60% that agglomeration does not overwhelm the supply-demand effect). Epistemic effort: Medium effort. This idea has bounced around my head for almost a year, and over that time I spoke with several friends about it. Then, I had a long conversation in which I formalized it a bit more, at which point I decided to write it down....